back to article Watch out, channel biz: Mega-services models will cut you if they can

Does the channel as we know it have any relevance to customers in today’s very complicated technical world? Forgetting the emotional kneejerk responses, which I can anticipate coming immediately, and the indignant shrieks of outrage from some legacy organisations and their dinosaur management who believe they have the right to …

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  1. GrahamB

    Good article Ian

    My experiences largely map to your article Ian, and I would add that I suspect that there has been an enormous amount of "if we ignore it, it will go away".

    The world is changing and as the saying goes "a bend in the road is only the end if you fail to make the turn". History is littered with organisations (run by grown ups) who ignored the threat, or thought that they could hold back the tide.

    The message is clear - CHANGE OR DIE. It's evolution.

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  3. ChannelMonkey
    Childcatcher

    Was there a point to this?

    If there was a point it might have helped but sweeping generalisations based on anecdotal data without one stat to prove one point doesn't help decision making.

    The world is changing for sure but the channel has potentially an even bigger role to play in a world where customer relationship and service will prevail. If anyone should be scared, it should be the vendors.......After all they have not much more to offer than products in the vast majority of cases and not all can be service providers.......

    What is Amazon but a channel with a new service model? What is Google but a product with no channel plan?

    The channel may yet have the last laugh...

    1. The Godfather
      Holmes

      Re: Was there a point to this?

      "If anyone should be scared, it should be the vendors.......After all they have not much more to offer than products in the vast majority of cases and not all can be service providers......."

      That's true, but neither can Distributors or all Resellers. There is no need for specifics and the article merely points to a suggested shift in the way business will be conducted and the inherent weakness of the current structure and delivery.

      "The channel may yet have the last laugh..."

      Technology and its delivery shapes the channel - the players do not. It's time to anticipate and prepare for new models and more pronounced consumer demand.

      1. ChannelMonkey

        Re: Was there a point to this?

        Why can't resellers or distributors offer services? Is consolidated billing the nirvana for end users? For instance, how many households have more than 2 services consolidated on one bill even though savings are offered? Even from the same vendor - e.g. car insurance? How many companies actually offer consolidated, multi-vendor billing if they are not finance sharks? Consolidation of bills is a possibility at reseller/disti level but end users and consumers are very different beasts. Name one major corporate who has two different telco vendors presented as a single invoice if not from a reseller of each of those vendors? The role of the channel has ALWAYS been aggregation and consolidation and it ALWAYS will be. Just a question of of embracing the new model and adapting techniques and systems. But possibilities don't diminish.

        Most companies buying Cloud services actually pay annual bills, not because they save money. It's because they budget that way. The Cloud hasn't changed end user behaviour on that front but it has impacted the P&L model of the providers.

        In the world of Cloud resellers are looking for direction and advice as to who are the players and how to access the market and what they will have to do differently. For disti's it's about presenting the opportunities and decreasing investment and risk for resellers. In reality, that's not a step change in the roles but it is in the model.

        That's where the advice needs to be aimed - funnily enough few have anything practical to say so they just nay say or waffle.

        Like me.

        There is still time for the channel to participate - the swamp of vendors have just as little clue on how to take access the market - and that means opportunity.

        Prophets of doom rarely make profits (I'll trademark that)

        1. The Godfather
          Paris Hilton

          Re: Was there a point to this?

          One needs to distinguish...observing markets, future trends and models is not prophesying doom; it is more a case of noting change and identifying opportunity, for any current players.

          Labeling those who look at changing models, new opportunities and partial demise of old traditional routes as 'Prophets of doom' is short-sighted. Change is not to be feared or ignored. (I'll trademark that)

  4. ChannelMonkey
    Trollface

    Like your new pic

    Fancy a drink some time?

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